Tesla Inc. may have made good on its long-standing promise to offer a Model 3 for $35,000, but the stock fell late Thursday as Chief Executive Officer Elon Musk said the Silicon Valley car maker is likely to report a loss in the first quarter.
Tesla said Thursday its cheaper Model 3 version will have a shorter driving range and new interior options, and its website shows it available in the U.S. in as little as two weeks.
Shares of Tesla TSLA, +1.63% were halted ahead of the announcement after ending the regular trading day up 1.6%. They resumed trading as the call with Musk and media was underway and most recently were down more than 3%.
Tesla also said it was shifting all its sales worldwide to online. The move, alongside other efficiencies, the company said in a blog post, enabled the company to lower all vehicle prices by about 6% on average.
In the call, Musk said the Tesla stores would turn into galleries, where customers would go to learn more about Teslas and electric vehicles, and service centers. The switch also gives Tesla a chance to sell its vehicles in all U.S. states, regardless of franchise laws, he said.
